Trial balance
Shop shelving Debit 16 000
Acc Dep'n Credit 3 200
Computer Debit 4 000
Acc Dep'n Credit 2000
Additional info
Computer Est. useful life 5 yrs No residual value
Shop shelving Est useful life 20 yrs Est residual $ 1000
2007-12-22 20:53:51 · 1 answers · asked by Ana M 1 in Business & Finance ➔ Other - Business & Finance
It all depends on your depreciation policy, and on whether you depreciate monthly or yearly. Assume straight-line method is used and you depreciate once a year, annual depn for computer is 4,000/5 = 800, so
Dr Depn expense - computer 800
Cr Accd depn - computer 800
Annual depn for shop shelving is (16,000 - 1,000)/20 = $750, so
Dr Depn expense - shop shelving 750
Cr Accd depn - shop shelving 750
2007-12-22 23:09:54 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋